Introduction

This assignment explores the business case and requirements for setting up a factory for the design and production of a new type of car battery. In doing so, many factors have to be taken into consideration, such as the effect on the environment and society, as well as the risks and opportunities involved. This assignment will also contain weekly problems that the students have to resolve.

The Warehouse

You have three options for a warehouse: one by a lake, one by train tracks, or build a new one near train tracks.

The warehouse by the lake:

Can be leased for $2/square foot per year for five years, then the lease is negotiable.

Contains 10,000 square feet of empty space

Has access to shipping which can move produce at $0.10 per kilogram per kilometre.

Is situated 40km from a large urban center.

Is situated just 5km from a small town.

The warehouse by the train tracks:

Can be leased for $1/square foot per year for five years, then the lease is negotiable.

Contains 10,000 square feet of empty space

Has access to rail transport which can move produce at $0.20 per kilogram per kilometre.

Is situated in a small town.

The town is known for high crime.

Is situated 80km from a large urban center.

A new warehouse near train tracks:

Can be built for $200/square foot.

Can contain up to 20,000 square feet of empty space

Is situated inside a forest with road service.

Is situated just 5km from a small town.

Has access to truck transport which can move produce at $0.40 per kilogram per kilometre.

Has access to rail transport which is 10km away which can move produce at $0.20 per kilogram per kilometre.

Is situated 80km from a large urban center.

Question: Which warehouse are you inclined to go with and why?